Order to Cash (O2C) Cycle in SAP with Movement types

Order to Cash (O2C) Cycle in SAP with Movement types

Order to Cash Cycle

Sales Order Creation: VA01

It is an official document stating that we are committed to deliver the goods/services and will receive amount for the same.

• No Accounting entry

Delivered goods against Sales order: VL01N

• Cost of goods sold  Acc    Dr 🡪 VAX
• Finished goods  Acc    Cr 🡪 BSX 🡪 601 Movement Type

Billing customer against Sales order: VF01

• Customer  Acc    Dr
• Sales Revenue  Acc    Cr 🡪 (VKOA – KOFI)

Receive amount from Customer: F-02/F-28/F110

• Incoming Bank  Acc    Dr
• Customer  Acc    Cr

DME and EBS

Once payment done in F110, DME file will be generated and this DME file need to send to bank so that bank will receive the amount from the customer mentioned in DME file.

After bank received the amount, bank will now send us EBS(electronic bank statement)  and that EBS we will upload in FF_5 for bank reconciliation. Final accounting entry will be

• Main bank  Acc    Dr
• To incoming bank  Acc    Cr

Movement types with accounting entries FI – SD

101 🡪 Goods Received against production order

• Finished Goods  Acc    Dr 🡪 BSX 🡪 101 Movement Type
• Change in finished Goods  Acc    Cr 🡪 AUF

601 🡪 Goods issue to customer for sale

• Cost of goods sold  Acc    Dr 🡪 VAX
• Finished Goods  Acc    Cr 🡪 BSX 🡪 601 Moment Type

Order to Cash (O2C) Cycle in SAP with Movement types

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